Stay informed on transaction tax compliance developments throughout each quarter of the year with our Completely Compliance blog series. The information included in this post summarizes the first quarter of 2023.
Written by: Daniel Tilson
Since our last newsletter, more local jurisdictions have joined the ARSSTC (Alaska Remote Sellers Sales Tax Commission). The jurisdictions include:
Written by: Daniel Tilson
Effective January 1, 2023, a 988 surcharge of $0.08 must be collected by telecommunication suppliers in addition to the currently established 911 surcharge. Both surcharges can be combined on billings. The 911 surcharge for 2023 is $0.30. The new 988 surcharge applies to each access line subscribed with a service supplier and purchases of Mobile Telephony Services (MTS).
Written by: Daniel Tilson
Effective November 1, 2022, the City of Aurora exempted any government fees imposed on purchasers from the city’s sales and use tax. The fees identified as exempt are the State of Colorado $0.27 delivery fee, the waste tire fee, and the upcoming carryout bag fee.
On August 22, 2022, the City of Denver revised its Municipal Code and City’s Use Tax Article to create a sales and use tax exemption for certain government fees. The State of Colorado $0.27 delivery fee is the only fee identified as exempt at this time, but other fees may become exempt in the future.
Written by: Daniel Tilson
The City of Grand Junction, Colorado, migrated to a new tax and revenue system, GenTax, in December 2022. Completion of the implementation is anticipated by February 2023. This new system includes the ability to:
With the introduction of a new system the following will occur:
Each account will need a FEIN or SSN in the system to ensure a successful transfer to the new system. If there are any concerns, please reach out to the City of Grand Junction at gjsalestax@gjcity.org or 970-244-1521.
Written by: Adore Walker
Connecticut suspended its excise tax on gasoline through 2022, and the suspension ended on December 31, 2022. Effective January 1, the excise tax is reestablished at $0.05 per gallon and will increase $0.05 per month until the original $0.25 tax per gallon is re–established. HB 6001 was signed by Governor Lamont in November.
Written by: Shawn Soomro
After several extensions through 2022, Governor Kemp signed an order on December 8th to extend the suspension of MEF tax until January 10, 2023. The suspension applies to gasoline, diesel, propane, and other gas types.
Written by: Amanda Bratton
Since November 10, 2022, you can no longer use the GovConnectIowa Quick File option to file sales/use/withholding (SUW) returns. A GovConnectIowa account needs to be created to file SUW returns after this date. Additionally, due to the upcoming updates that will be applied to GovConnectIowa, any drafts that are saved on the site should have been submitted before November 10— otherwise, they were deleted.
Also, effective November 9, 2022, Iowa adopted a new rule establishing a failure to file penalty. If the DOR has sent a demand letter to the taxpayer due to failure to file, the taxpayer must file all requested returns within 90 days of the date on the letter or be subject to a $1,000 penalty for each failure to file. Additional penalties can also apply as provided by law.
Written by: Claire Ashcraft
Currently, businesses who file for a single location in Kansas can file the ST-16 form to report sales tax. The state has issued a notice that this form should no longer be used effective January 1, 2023. Instead, taxpayers who used to file the form should now file the ST-36.
Written by: Shawn Soomro
SB235 was signed by Governor Edwards in June and creates many changes in the remittance of state and local taxes effective January 1, 2023. Currently, Louisiana allows for local tax administration at the parish level. If a business has physical nexus in the state, both a state registration and parish registration are required in the parish where nexus is established. Remote sellers can register as a remote seller through the Louisiana Sales and Use Tax Commission for Remote Sellers and remit both state and parish tax through the Commission portal. The signed Act will require the Commission to provide uniform remittance for both state and local taxes for both remote sellers and nonremote sellers. Committees must provide a report on the pros and cons of this approach to the Senate Committee by January 31, 2023.
Written by: Claire Ashcraft
Missouri modified the manufacturing exemption starting January 1, 2023. It exempts the following from state and local sales and use tax: purchases of equipment, machinery, chemicals, and materials used or consumed in mining, manufacturing, processing, compounding, or producing any product or used in research and development related to mining, manufacturing, processing, compounding, or producing any product.
This exemption previously only applied to state sales and use tax and local use tax, but not to local sales tax. Businesses with qualifying sales will report the exemption as a negative adjustment on their sales and use tax returns. It is no longer necessary to report these sales using the item code 4001 for the exemption.
More information can be found in Senate Bill 153, Section 144.054, RSMo, or the Exemptions Unit in the Taxation Division of the Missouri Department of Revenue.
Written by: Adore Walker
Between June 1, 2022, and December 31, 2022, motor fuel and highway diesel motor fuel tax was suspended. Effective January 1, 2023, the suspension is lifted. Excise tax, prepaid tax and MCTD tax must be collected by distributors.
Written by: Adore Walker
In November 2022, Pennsylvania released its new online filing port myPATH. Businesses using the previous portal, eTides, need to transition their business accounts over to myPATH by creating a new username and password. Once logged in, an option to transfer accounts will be available.
Written by: Adore Walker
Effective January 1, 2023, larger businesses will be required to file and pay returns electronically. Businesses that remit tax in excess of $5,000 annually for all tax types combined, or whose annual gross income exceeds $100,000, are considered large businesses and the mandate applies.
Written by: Shawn Soomro
The State of Texas offers a single local use tax rate for remote sellers. This rate changes annually based on average local rates imposed in the prior year. For 2023, it is determined that the single local rate should be 1.75%.